Growing up and in my university days we used to listen to an artist called “Sean Paul”. Anyone who listens to mainstream radio or likes reggae music is familiar with his work. I came across an article on him listing his net worth at something along the lines of $10 million. I thought to myself – WHAT??
OK I know what you’re thinking – that sounds like a lot of money, but in actually it is NOT, especially in comparison to what he was probably earning throughout his career. I know many real estate investors who over the course of their careers accumulate far more simply by buying and holding real estate. No celebrity status, no massive endorsements or record sales – so hence I was a little caught off guard with this number.
For comparisons sake, I want to talk about celebrities like Jay-Z and Beyonce, who have amassed net worths in the $400-$500 million dollar range. Yes they have had fruitful and extremely successful careers as artists, but they have also been brilliant at building brands, and creating other streams of income through investments and entrepreneurial ventures.
So what is the secret to amassing wealth over time. It clearly isn’t just about hard work and celebrity status.
Even among celebrities and sports superstars who earn massively large incomes – some of them end up with very little net worth, or better yet, dead broke.
And I know we all grew up with the motto that hard work leads to massive success (and wealth) – but this isn’t always the case either. If you really think about it, most people wake up in the morning and work hard.
So it isn’t about earning high incomes
And it isn’t about how hard you work.
Ok so then – what is it? What is it that make some people wealthy.
It comes down to focusing on what you KEEP. How much of your income do you amass over time, and how much of it grows. These are the fundamentals of savvy investing – how can you accumulate money and have this money continue to work hard for you.
What you keep is important when it comes to money, but there are other things you get to keep that need to be factored in as well like: knowledge, intellectual property, brands, lists and databases, key relationships etc.
Ask yourself this – if you lost everything tomorrow (financial wealth) – what do you have that could keep that would allow you to rebuild yourself.
It is all these things that we keep over time that have allowed us to amass wealth.
You see it time and time again with savvy entrepreneurs. They build massive businesses – they sell them – and then they replicate it in a completely different industry. It’s about what you are able to keep.
So when I talk to people who are interested in changing their lives – investing, bettering their futures.
I like to say that you can’t just focus on what you make. Is that $20K raise really going to change your life.
When I was in my 20’s it wasn’t about what I made – it was about building a foundation of knowledge and skills which would allow me to amass wealth in my 30s. I have spent a fortune on education and coaching.
And then in my 30s it was about growing what I made. It was about optimizing my life to increase what I can keep. And investing it all.
So focus on what you make yes. But also focus on what you get to keep. It is ultimately about accumulating wealth to create the most comfortable life and future for you and your family.
So until next time, happy Canadian Real Estate Investing.
Jose Jafferji, REIA
Your Real Estate Investment Advisor, Coach & Realtor